What is IRS Form 1099-QA?

If you make a withdrawal from an Oregon ABLE account, you will receive an IRS Form 1099-QA, detailing all the withdrawals you made from your account throughout the tax year. If the money you withdrew from your account was used to pay for qualified expenses, the distributions are not taxable, and you don’t need to report them as income. Just keep your 1099-QA with your tax records. We do not send tax forms for simply contributing to your account. You must make a withdrawal from your account or have closed your Oregon ABLE account during the tax year to receive the tax form.

There may be penalties for making withdrawals from your account for non-qualified expenses. There may also be tax implications depending on who was responsible for making account withdrawals. To ensure that you properly handle matters on your federal income tax return, please consult a tax advisor and learn more about Form 1099-QA directly from the IRS.